I had breakfast with a friend this week who told me that she had bought a small "old" media company. By old media, I mean something that is printed on newsprint. My friend was able to purchase this company, which has been losing money, for less than a million plus some back end. In less than five minutes she was able to tell me her entire business plan.
- Upgrade the technology so the production department could be reduced significantly
- Change the sales comp
- Build a complementary website
- Ensure the sales team is calling on new accounts (novel concept)
She said that they will be profitable before the end of the year. I have heard a couple of other similar stories recently. While there are always bargains, there are a lot more now. Here's why:
- More companies are losing money and the owners can't fund the losses
- Companies that didn’t invest (in technologies, people, etc.) and don’t have an infrastructure that reduces costs get especially hammered in a bad economy.
- Owners are too beat up from the last 12 months and just want to get out.
Who's going shopping?
Yes, it's a buyers market all the way around. If you have cash with which to buy.
Even if you have the right business plan but need to borrow money to execute, you will not find available money to fund the project.
Glad your friend had the cash to take advantage of these real business bargains.
Posted by: Nancy Fox | November 06, 2009 at 04:42 PM